One of my clients (Ltd company) has gone bust on me, the meeting of creditors is on Friday of this week. Is it worth going? Or is everything all done on paper and cut and shut before I get there.
He owes me a lot of money for my time (graphic design), no goods are involved to go and snatch back.
Any words of advice?
WGA
You will be a long way down on the list for payment, save your time and wait for the Administrators to contact you.
If you go or don't, it won't change anything. You'll get the smaller part of nothing from what he owes you. The big boys, banks, tax etc will control everything.
Sorry to be a Jonah, but I think you'll just have to write it off as a bad debt. Don't forget the VAT relief, if appropriate.
In my experience the administrators bills and invoices tend to cover most of what is available.
In one case they announced that they needed another 6 months to "sort the paperwork" which pretty much sucked up what was left.
Well pretty much what I thought, I have just filled out the forms to the liquidator with a statement of account, not expecting much, at least my tax bill should be less 😉
WGA
I should'nt bother.
In 2008 I nearly lost everything including my home because customers owing me went into liquidation, administration or bankrupt I've never seen a penny. In fact I lost more chasing them through the courts.
Limited as of March.
The meeting is purely procedural - the administrator (or liquidator, if it's a liquidation) will explain the assets versus liabilities of the company and then explain what that equates to in terms of return (if any) to the secured and unsecured creditors. He'll then ask the assenbled creditors to approve his proposal (like they have another choice!).
You are an unsecured creditor, so have to wait your turn after the secured creditors (banks, etc.) have had their slice. You'll two eighths of f all.
Eventually, once all the assets are liquidated, you will get a cheque for your two eighths of f all.
Don't waste your time attending the meeting.